Property tax rate dropping slightly in Livonia next year

Livonia residents will see a rollback on their property tax rate starting next year, according to the recently proposed city budget.

The plan, submitted by Mayor Dennis Wright and the city administration, would see the city's tax rate drop from 13.938 mills to 13.8993 mills, a decrease of 0.0387 mills or 0.28 percent. That rollback of the rate comes in the form of a Headlee reduction, as taxable values across the city have increased.

"The overall values of our property went up more than the rate of inflation," said Mike Slate, the city's finance director.

The city council reviewed the proposed budget during a committee meeting Monday night, a standard meeting held each year to go over the proposed plan for the upcoming year.

Even with the reduction in the city's tax rate, general fund revenues are expected to increase in the city's next fiscal year, which begins Dec. 1. That increase comes as property values climb, state-shared revenue increases and the city sees additional building permits acquired.

With the rollback, the city continues to have the second-lowest tax rate among cities in Wayne County. Only Romulus, which levies 13.9039 mills, is lower.

General fund dollars expect to increase 3.1 percent for the city, which equals about $1.77 million. This comes as market values for residential, commercial and industrial properties are increasing roughly 4.1 percent across Livonia.

The city will also see some of its costs increase: New contracts with several collective bargaining units, including firefighters, call for 2-percent raises the next year. Medical insurance costs are expected to increase $125,000 and the city will make a voluntary payment into its pension plan, which has been closed to new employees for nearly 20 years.

Slater said the city is not required to make a payment into the fund this year, but saw a projection that Livonia would need to deposit $1.3 million the following year. To help ease that amount, Slater said the city could make a voluntary payment of $560,000 this year.

The city continues to have about 20 percent of fund balance available, more than the recommended 16.7 percent.

The council will hold a public hearing on the proposed budget at 7 p.m. Oct. 4 in Livonia City Hall and will vote on it later this fall. The new budget takes effect Dec. 1.